This is the era of flow as king. DG blocks 500 billion yuan of Chinese youth. How does DG dujiabanna block it? Let's get to know the flagship store on the official website of DG dujiabanna.
Overnight, people who don't mix with the fashion circle all know the Italian luxury brand d g (Dolce Gabbana, dolce Gabbana).
Latest news of the event: on the 23rd, designer DG recorded an apology Video: to the global Chinese, I'm sorry!
Next, let's smooth things out:
In order to warm up the Shanghai show on the 21st, DG released three short videos of ads on Weibo, instagram and Facebook labeled "DG loves China".
In the advertisement, an Asian model with narrow eyes ate Italian pizza, rolls and spaghetti with his chopsticks sheepishly. The commentary is' how to eat the great traditional Italian Margarita pizza with the tableware in the shape of a stick '. '
A netizen talked about it in INS. Stefano Gabbana, a designer of D.G., came to argue with him. He was angry and scolded, and publicly insulted Hua.
What do you mean by that? Do you admit that you said those words in a different way?
After the announcement of the dialogue, there was an uproar immediately. Not only did instagram platform explode, but after it was sent back to Weibo, it also aroused the outrage of Chinese netizens and quickly became a hot word on Weibo. Zhang Ziyi, Li Bingbing, Chen Kun, Wang Junkai and many other performance stars have announced boycotts of DG China show, while netizens have called for a nationwide boycott of DG.
After that, DG immediately apologized through the official ins and the official microblog, saying that its official account and designer account were stolen, apologizing for the impact and harm of these untruthful remarks on China and the Chinese people, and stressed that it always maintained its love and respect for China and Chinese culture.
But the apologies were not understood by netizens. At around 3:00 p.m. on the 21st, DG said that the show scheduled for the evening of the 21st was cancelled. Then at about 5 p.m., the official microblog of DG announced that the show was not cancelled, but was rescheduled.
Banner also posted a screenshot of his own instagram platform saying, 'this is not what I said! Our legal team is taking action. I love China and Chinese culture. I'm sorry for what happened. 'it's worth noting that Banner's reason is' stolen account', not 'fake screenshot'. This means that the chat record posted by tranova is true.
At the same time, the designer of DG sent a response again: "if DG is racist, he will not spend his energy on China and Japan, and will not let Chinese models appear in DG's show. Finally, he said: 'I'm sorry that you can only see discrimination from it'. And "sorry" here is not to apologize, but to regret.
Because of this incident, 8 million stages have been set up, and the grand show has been cancelled, but the follow-up caused by the improper comments of DG founder designer Liu Hua is still fermenting, and it has become increasingly fierce. Search "d g" on domestic e-commerce platforms such as tmall, JD, vipshop and charm exchange, and it is already "no such product".
Previously, in order to win the Chinese market, DG and other traffic stars such as delireba and Wang Junkai embraced each other sweetly and invited them to show and become brand ambassadors. Now that the honeymoon is over, Chinese stars have issued statements to draw a line with dg.
Even those who sell tickets for scalpers say they want to refund the original price!
The salesmen of the flagship store of DG in Italy are all deeply aware of the stupidity of the founder's move. DG is in danger in the Chinese market, and this business aftereffect is definitely earthquake magnitude. As a result, not only DG's Chinese business will collapse, but also Italy's pillar fashion industry will be impacted.
This time insulting China's out of the box comments may make DG lose the whole Chinese market. Bain Capital estimates that China accounts for a third of global luxury sales, which could rise to 46% by 2025.
DGS spend 500 billion yuan a year in China
Now in every country in the world, we can see that Chinese people are frantically buying all kinds of luxury goods. After the rush, people with big bags and small bags still remember to compare with each other and exchange shopping experience. At present, the 80's and 90's are becoming the main force of luxury consumption, and the Post-00's consumer groups are also rising rapidly. Why is luxury so popular among young people?
1. The improvement of Chinese living standard year by year
According to the report, in 2016, 7.6 million Chinese households purchased luxury goods, with an average annual consumption of 71000 yuan, twice that of French and Italian households.
On the whole, China's annual consumer spending on luxury goods is more than 500 billion yuan.
In 2008, China's luxury consumption accounted for only 12% of the world's. After years of development, China has become the main country of global luxury consumption.
2. Reduce the price of luxury goods to attract consumption
In addition to the rising level of Chinese consumption, luxury goods companies realize that there is a huge profit space in the Chinese market, and proper price reduction can promote the growth of Chinese purchasing power.
We can find that from 2011 to 2017, the pricing of luxury goods in China has changed, and the average price difference has narrowed from 68% in 2011 to 16%.
There is no denying that luxury goods have certain advantages. They are well made and guaranteed, and they are also in the leading position in brand and value recognition. At the same time, personalized customization of some luxury goods can meet the needs of different consumers, and it is becoming a new consumption concept of the public that they can buy their favorite products at a slightly high price.
3. Changes in luxury structure and consumers
Today's luxury goods fall into two categories:
One is the old luxury brands such as Dior and Chanel;
The other is the emerging luxury brand.
With the young consumption of luxury goods, more and more consumers welcome the light luxury products, and the growth rate is increasing year by year.
The growth of the middle class and the rich in China is a huge driving force for the growth of luxury consumption.
Offline + online + wechat Marketing = empty your pocket
How do these luxury goods make money in Chinese pocket?
1. Offline store sales
In the past, the mainstream luxury products with high cold image mainly used offline stores as the main sales channel. However, since 2015, the luxury industry with physical retail as the core channel to attract money began to face the dilemma of continuous decline in business performance and massive closure of offline stores.
At that time, not only LV closed 20% of its stores in the Chinese market, but also Patek Philippe, baosilong and even Giorgio Armani flagship store, which has been in China for nearly 10 years, left Shanghai, the city with the strongest consumption capacity in China.
Of course, the lack of offline performance growth does not mean that consumer demand is no longer there.
2. Online marketing goes deep into the third and fourth tier urban consumer groups
On the contrary, with the development of mobile Internet, the continuous expansion of e-commerce online shopping market, and the rise of the millennial consumer groups who pursue more personality and quality, the online sales of luxury goods maintain a growth rate of more than 20% every year.
In 2017, the global luxury online market reached 23.5 billion euros, a year-on-year increase of 24%.
Therefore, many luxury brands turn their perspective of making money to the online market. In addition to their own online official shopping mall, they also actively embrace the mainstream domestic e-commerce. For example, since 2017, luxury brands such as LV, Tissot and Armani have entered tmall.
One of the advantages of luxury goods entering the e-commerce platform is that it can cover the third and fourth tier urban consumer groups that were not captured before.
In fact, in addition to the first and second tier economically developed cities being the main consumption cities of luxury goods, there are also a large number of wealthy people with considerable economic strength in the third and fourth tier. However, due to the lack of effective purchase channels, this group has been in the blind area of luxury sales in the past.
By cooperating with the e-commerce channel with the property of market sinking, luxury goods can extend to the third and fourth tier cities to gain incremental revenue.
3. Wechat brings a large number of young traffic
The pure channel cooperation obviously can't pry consumers' wallets to the maximum extent. Since they turn to online gold mining, luxury goods naturally need to use some Internet marketing tools to empower sales.
Data shows that up to now, 92% of 107 luxury brands entering the Chinese market have opened wechat accounts, an increase of 87% compared with two years ago.
Of course, because 68% of luxury brands push messages less than 5000 times, many luxury brands are willing to spend a lot of money to put information flow ads in wechat friends circle.
For example, Chanel, Dior, van Cleef, Tiffany Co. In addition, luxury brands such as Dior and Hermes have also engaged in limited online shopping. For example, today's advertising in the circle of friends is Lancome's~
Of course, when wool comes out of sheep, these expensive marketing expenses will be amortized through high selling prices and then reflected in good-looking revenue statements.
Data shows that in 2017, LVMH, Estee Lauder and Shiseido's revenue in the Asia Pacific region increased by 20.33%, 8.52% and 16.98% year-on-year respectively, showing significant signs of recovery compared with the previous period.
Hermes, which is trying to do online marketing, also posted an 11% increase in net profit in the first half of 2018.
It seems that the way of online sales has brought a lot of traffic for luxury goods, as well as considerable and good-looking financial statements.
Finally find out why I'm in debt all year round
Look at a group of data and experience the contribution of Chinese people to luxury goods. It's amazing! The proportion of Chinese people's contribution to the sales of luxury goods groups:
Chinese luxury consumption in mainland China accounts for the proportion of global brand sales:
In fact, looking at the domestic luxury consumer market and the examples around us, it is not difficult to find that the main consumer group is not the rich group in China, but the young people with ordinary incomes.
It's like weberland's theory of "conspicuous consumption" a hundred years ago. For example, if you want to wear a very expensive watch, it is obviously not to see the time, but to show off to people and show their economic status.
Now, do you realize the reason why you are always busy all year round, not only because you have no savings, but also because you are in debt?